Oct. 24, 2011


Comments

 
 
 
  • Can someone explain the connection between municipal deposits & the mission of most Credit Unions which is largely focused on 'serving the underserved' (at least this is what many in the CU community have told me). Given the very high excess liquidity levels at the vast majority of CUs, what is the driving rationale for this action?
    Serge Milman | OptiRate
     
     
     
  • Hi Serge, Thanks for the comment. I think credit unions are pushing for municipal deposits as one more way to be a pillar in their communities. Credit unions already offer great services to the individuals in their communities, and now with municipal deposits, they can also offer the cities more competitive rates on deposits, loans and financing. This creates a credit union-funded stimulus rather than a tax-payer funded stimulus. In the long run, when the municipality benefits, the community as a whole benefits.
    Michael Emancipator
     
     
     
 
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